P&G is a leading global daily chemical group. This article analyzes how P&G returns to its growth trajectory by implementing new strategies from three dimensions: brand, product, and marketing, and attempts to provide reference for the development path of local daily chemical enterprises

Brand dimension: endogeneity and extension, improving the layout of multiple brands and categories

One product multiple brand strategy: a comprehensive multi brand matrix, accurately positioning and segmenting customer groups

P&G’s official website shows that the company mainly has 62 consumer brands, and core brands are still the main contributor to revenue. According to Euromonitor data, in 2021, P&G’s global market share in clothing cleaning will exceed 26%, and its sales will exceed US$5 billion. Super brands such as Tide and Blue Wave, Donnie, which has sales of more than 2.5 billion US dollars, the three major brands together account for 68% of P&G’s global clothing cleaning sales; Pantene, which has sales of more than 5 billion US dollars in the field of shampoo and care, Head & Shoulders, which has sales of more than US$2.5 billion, and Rejoice, which focuses on the Asian market, together account for 86% of P&G’s global hair care sales. Oral-B and Crest, which have sales of more than US$2.5 billion in the oral care field, The two brands together account for 90% of P&G’s global oral care sales.

P&G adopts a multi-brand strategy of one product, staggering competition in terms of price range, product efficacy, etc., strengthening product positioning to grasp the needs of segmented customer groups, and occupying a larger share in the same category. Procter & Gamble has 6 core brands in the clothing cleaning category. Among them, Tide focuses on cleaning, Donnie focuses on fragrance retention, Lanno focuses on smoothness, and Bilang focuses on removing bacteria. The brands have distinct characteristics. Different brands focus on different functional demands and cover different prices. range, effectively meet the clothing cleaning needs of different customer segments, and continue to maintain the leading competitive advantage in the category in many regions around the world. According to Euromonitor, P&G has been the leader in the global laundry cleaning market from 2011 to 2021, with a market share of 26%.

Marketing dimension: centralized marketing based on consumer insights to strengthen brand concepts

Consumer-centered market research system lays the foundation for brand marketing

P&G’s marketing concept penetrates all aspects from demand confirmation, new product development, brand recognition, etc., and deeply grasps consumer needs and market trend changes. P&G’s market research department can be traced back to 1924. It is one of the earliest market research departments based on data analysis. After nearly a hundred years of accumulation, P&G’s market research has formed a unique consumer insight system, which provides the basis for subsequent Lay a solid foundation for new product research and development and brand marketing.

P&G has a profound accumulation in traditional marketing, and its creative concepts and marketing models are at the forefront of the industry. The traditional marketing era presents the characteristics of concentrated consumer attention and centralized channel traffic. P&G fully grasps the main traffic entrances centered on traditional media such as paper media, outdoor posters, radio dramas, and TV advertisements to increase brand exposure and popularity. One of the early soap operas sponsored by Procter & Gamble, “Guiding Light” premiered on radio in 1937 and later aired on television, making it one of the longest-running soap operas, according to the New York Times. P&G deeply integrates the changes of soap operas from radio dramas to television, seizes the traffic entrance of traditional marketing media through marketing advertising placement, continues to enhance consumer awareness, and establishes a long-lasting brand image.

Differentiated marketing strategies firmly bind brands and functions. Under the multi-brand operation system, the company is good at creating differentiated marketing concepts for brand positioning, starting from diversified consumer demands, positioning multiple customer segments, and occupying a competitive position in segmented categories. Take the marketing development of P&G’s shampoo in China as an example. In 1988, P&G took the lead in launching the Head and Shoulders brand in China, proposing the differentiated selling point of “anti-dandruff”, which reversed the Chinese people’s single-minded focus on “cleaning” of washing and care products. demands and grasp the Chinese people’s upgraded demand for quality consumption. Since then, P&G has launched multiple brands such as Rejoice and Pantene, focusing on differentiated marketing concepts such as “softness” and “strength”, supplemented by personalized color packaging and targeted advertising and marketing, and quickly combined the functions of different brands. The concept is conveyed to consumers, deeply binding “anti-dandruff” with Head and Shoulders, “softness” with rejoicing, and “strength” with Pantene.

Channel dimension: An efficient and complete modern distribution channel system makes P&G products within reach

Distribution channels: Streamline and optimize the dealer team to improve dealer operation efficiency

Optimize dealer channels and improve operational efficiency. From its inception to the early 20th century, P&G adopted the traditional sales channel of “distributor-retailer-consumer”. According to IBM data, more than 80% of P&G’s sales in 1999 were borne through distributors. As the brand matrix continues to expand, dealers have experienced problems such as cross-selling and lowering prices. Since 1999, P&G has started to transform from a single dealer model to a multi-channel model, promoting a series of reform measures and strengthening its ability to control traditional channels:

Streamline the number of dealers: In 1999, P&G implemented the “Distributor 2005 Plan” to rectify dealers and optimize the dealer network. According to IBM data, after the reform, the number of P&G dealers was reduced from more than 300 to more than 100;

Strengthen the regional cooperation of dealers: Transform from a “stock-pressing” management model to a collaborative development model, focusing on supporting large-scale regional dealers to improve terminal coverage; in addition, the dealer fund is set up to mobilize the enthusiasm of dealers and help dealers improve Profit level;

Improve the management information system: P&G has launched a distributor management system, a distributor replenishment system, a distributor integration system, etc. to improve the efficiency of distributor operation and management.